Czech industrial production fell 0.4 per cent in 2023, the worst result since the COVID-19 pandemic actively spread, according to bne IntelliNews.
December data published by the Czech Statistical Office (CZSO) showed a 0.7 per cent year-on-year (y/y) decline in production output.
However, a 2.8% increase was recorded on a monthly basis, with the value of new orders rising by 0.9% y/y. The head of Industrial Statistics at CZSO, Veronika Dolezalova, pointed out that December’s figures were “virtually on the same level” as for the corresponding month last year.
Dolezalova named the automotive industry as the leading sector of production and orders in the country, noting that “the decrease was contributed the most by the production of electricity, but for orders, it was due to a deeper slump in the manufacture of basic metals.”
Economist and member of the government economic advisory council NERV, David Marek, argued that the economy needed a reduction in interest rates.
It will start up the construction [sector], production construction material, which is part of industrial production and second […] advantage would be moderate fiscal impulse.
The board of the Czech Central Bank (CNB) will hold a monetary policy meeting on February 8, with some suggesting the bank will remain cautious despite analysts expecting a cut in interest rates down from 6.75%.
Construction volumes in December declined by 4.6% y/y and increased by 1.3% m/m. Authorities issued 7.5% fewer building permits and the approximate value of authorised construction works increased by 62.4% year-on-year.
Furthermore, the number of commissioned houses decreased by 16.5 per cent, while the number of commissioned dwellings increased by 5 per cent compared to the same period last year. Radek Matejka of CZSO stated:
Construction output decreased by 2.6% y/y in 2023, and the decline was sharper in the segment of civil engineering construction.
